You probably heard today that Rahm Emanuel is looking to increase Chicago property taxes by $500 MM. As the Chicago Tribune reported this is the largest property tax increase in modern history. I’m not sure the city has any other choice right now, given the consequences of past profligate city spending.
What has not been reported very well is exactly what does that mean for you and me exactly. I dug into it a bit and it’s not exactly easy to figure out. If we could just find out how much money the city takes in in property taxes in total then we could figure out what a $500 MM increase translates into in percentage terms – because everyone’s property taxes will go up by the same percentage in theory. However, the city of Chicago, in all of their budgets and numbers that they throw around, fragments all the information. It’s not like you can find a single number that says this is the total property tax receipts for the city.
But I think I figured it out. There is one document out there – The Chicago 2014 Tax Rate Report – and on page 14 they show what they call the 2014 Extension. Of course they can’t just call it tax receipts. But I think this is what you get when you apply the tax rate times the total equalized assessed value – i.e. the extended value.
I actually did that calculation and it came out really close. The fact that it wasn’t exact does give me some concern.
So this is how I came up with 11.3% – $500 MM divided by that $4.4 B number. This seems to be consistent with other information floating around out there.
Now if you think I’m wrong just politely explain yourself in the comments below and let me know what you think the correct calculation is. In the meantime, since my property taxes will be going up by 45% next year, I’m going to figure out where I should retire. (Eventually. I’m not retiring any time soon.)
#PropertyTaxes #ChicagoBudget #ChicagoPolitics
Gary Lucido is the President of Lucid Realty, the Chicago area’s full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insider’s view of the seamy underbelly of the real estate industry, or you just think he’s the next Kurt Vonnegut you can Subscribe to Getting Real by Email. Please be sure to verify your email address when you receive the verification notice.